$5 Billion Target for SAP
November 8, 2010
Oracle’s ex-president Charles Phillips testified the company would have sought a staggering five billion dollars from SAP for skirted licensing fees had the deal happened over the table. This is twice the minimum amount sought by Oracle in a lawsuit with SAP dating back to 2007 for copyright infringement.
“Oracle Ex-President Says SAP Ducked $5 Billion in Fees” asserted that Oracle alleges that SAP’s unit TomorrowNow intentionally downloaded the “Safe Passage” software without consent to “avoid paying licensing fees and to steal Oracle customers.” SAP has admitted there were inter-company concerns over TomorrowNow’s actions and that the lawsuit was not entirely a surprise. The top producer of business application software has also conceded the downloads in question were in fact fraudulent.
Having freely admitted fault on this scale will likely make it difficult in the future for SAP to defend any settlement less than the five billion dollar figure thrown out today.
The proceedings will continue with Larry Ellison’s, Oracle CEO, testimony slated for November 8th. Kaching may go the cash register. With an infusion of eurocash will Oracle address its long-standing need for a next-generation search and content processing system? We hope so.
Sarah Rogers, November 8, 2010
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